The sterling UK money securities fund, which invests in the Threadneedle UK money securities fund, has fallen by 18 per cent since August 2008.

Doherty Pension & Investment Consultancy IFA Terry Lappin says many platforms rated the fund low-risk and investors have lost significant sums of money as a result.

He says: “There are major problems with the risk profile of the fund. A lot of clients, many of which are low-risk investors, have been very disadvantaged.”

A Skandia spokesman says the Selestia platform assigns a risk rating of one out of 10 to the fund but says this is the rating for the sector as a whole, not the individual funds. Nucleus and Ascentric say they do not assign their own risk rating to funds, instead signposting ratings from agencies such as Trustnet and Morningstar.

Trustnet assigns the fund a one-crown rating, which is the worst rating in terms of alpha, volatility and consistency on a scale of one to three crowns.

Zurich says risk was adequately conveyed. In March, it plugged a 4 per cent fall in a separate money market fund.

Amanda wrote recently about those clients who need a little tough love – the ones who arrive at your door knowing how much cover they want and why they want it. What they seldom know is how much cover they actually need, what type of cover they should choose and the range of benefits available in the market. […]

Newsletter

Latest from Money Marketing

A High Court judge says the FCA can submit evidence in a case that could shape how Sipp misselling claims are handled in the future. In the case, which started today, lorry driver Russell Adams alleges Carey Pensions missold him a self-invested personal pension. Carey Pensions is accused of using unregulated introducers to invest Adams’s […]

Studies have found funds can be too big or too small to outperform, suggesting size does matter The assessment of whether to invest in a certain fund is a tricky business. Bearing in mind roughly 90 per cent of active funds do not beat their benchmarks over periods longer than 10 years, the odds are […]

The following sorry verse embodies procrastination on a whole new level: “Hello there, my name’s Phil; I rap like a small bear writing a will [diligently]; Estate-planning, ninja-whooping IHT; Shame I’m not as bizzie [urban affectation] with the RLP.” These words were penned in response to my father’s short verse sent to me, after the […]